The impacts of internal information technology application index on financial performance of Vietnamese commercial banks

Abstract

Technology has become essential in every industry, including banking. It can optimize work
processes and improve customer service. However, the question remains: does it help banks improve
business efficiency? This article conducted a panel data regression analysis of commercial banks listed
on the Vietnamese stock exchange from 2014 to 2023 to investigate the correlation between internal
information technology applications and banks' financial performance. The research results revealed that
the internal information technology application (ICTcore), which includes implementing core banking,
deploying basic applications, and implementing electronic payments, has a negative correlation with the
financial performance of banks. Additionally, the size of the bank and the scale of loans can also impact
banking financial performance, while the bank growth rate has no impact on the ROA of banks observed
from 2014 to 2023.